Product An Introduction to the Marketing Mix by ygc16669

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									      Product: An Introduction to
          the Marketing Mix

                 Lectures in Marketing
                         2003
                 Dr. Richard Sjolander




What is a Product?
   Anything that can be offered to a market for
   attention, acquisition, use or consumption.
   Satisfies a want or a need.
   Includes:
      Physical Products
      Services
      Persons
      Places
      Organizations
      Ideas
      Combinations of the above




            Some Product Definitions

  Product Item: A specific version of a particular good or
  service that a firm sells.(Suave Herbal Care Chamomile
  Shampoo)
  Product Line: A closely related set of individual
  products offered by the firm. (Suave hair care products)
  Product mix (assortment): All products offered for sale
  by a firm. (All Helene Curtis Products)
  Product Class: The set of all similar products offered
  by all firms that function in similar ways and offer similar
  benefits. (Shampoos)
                  Product Lines: Review

 Product item
 a 20 inch Crosscut saw

 Product line
 Hand saws


 Product class
 Hand tools




Levels of Product                           Augmented
                                             Product


                            Installation


                            Packaging
                   Brand                   Features
                   Name       Core
                             Benefit                       After-
 Delivery
                                                           Sale
 & Credit                      or
                                                          Service
                  Quality    Service         Design
                   Level




                             Warranty

         Actual                                  Core
        Product                                 Product




             Classifying Consumer Products:
                Durability and Tangibility


       Durable
        goods
                            Nondurable
                              goods

                                                      Services
          Goods-Services Continuum

                                                                  e
                                                          Resum



                        Restaurant’s              Employment
                          offering               agency service
    Trowel



       Good           Good/service                     Service




     Product Classifications
Consumer Products: Buyer Behavior
   Convenience Products              Shopping Products
   > Buy frequently & immediately    > Buy less frequently
   > Low priced                      > Gather product information
   > Many purchase locations         > Fewer purchase locations
   > Includes:                       >Homogeneous/Heterogeneous
       • Staple goods                > Compare for:
       • Impulse goods                   • Suitability & Quality
       • Emergency goods                 • Price & Style

   Specialty Products               Unsought Products
   > Special purchase efforts       > New innovations
   > Unique characteristics         > Products consumers don’t
   > Brand identification           want to think about
   > Few purchase locations         > Require much advertising &
                                    personal selling




                Example of Consumer
                Perceptions of Motels

 Convenience (emergency): Scared motorist in
 bad weather will take first one he/she sees.
 Homogeneous Shopping: Tired motorist exits
 and chooses among those present.
 Heterogeneous Shopping: Same motorist
 shops for type of facility wanted at a ‘fair’ price
 Specialty: Talk to others about destination,
 check brochures + call ahead for reservation.
            Classifying Organizational
                     Products
     Capital              Production           Operating
    products               products            products
                         (materials and      (supplies and
                            parts)             services)




   Installation          Raw & process       Supplies
   Accessory             material            Services
   equipment             Manufactured/       Software
                         component           Information
                         parts




Individual Product Decisions
                     Product Attributes



                         Branding



                         Packaging



                         Labeling



                  Product Support Services
Product Attribute
Decisions include


             Quality             Features


                      Design




                  Brand “Names”

  Brand: Any identifying feature that
  distinguishes one product from others.
  Brand Name: The part which is readable
  Brand Mark: Non-vocalizable parts of a
  brand
  Trademark: legally protected combination of
  brand name and brand mark
  Service mark: Same as above for services




                 Why Brand?
            Producer’s Perspective

  To Differentiate the product offer from the
  competition
  To Facilitate Communication with target
  customers
    can advertise producers own product only.
  To Facilitate Repeat Purchase
    customer will be able to find desired product
                     Why Brand?
                Consumer’s Perspective

  Helps consumers choose products.
  Creates Quality Assurance for the customer
  in their product choices
  Makes Buying Easier to find products for
  repeat purchase that have performed well
  Can Communicate to others about the
  purchaser




                       An Overview of
                     Branding Decisions
                Brand-       Brand-        Brand-     Brand-
Branding       Sponsor       Name         Strategy Repositioning
Decision       Decision     Decision      Decision   Decision
               •Manu-       •Individual
                facturer     brand        •Line
                brand        names         extension
                            •Blanket                   •Reposi-
                             family       •Brand        tioning
•Brand         •Distribu-    name          extension
                tor         •Separate
•No brand       (private)                              •No
                brand        family       •New          reposi-
                             names         brands       tioning
               •Licensed    •Company-
                             individual   •Cobrands
                brand        names




Brand Strategy
         Line Extension
            Existing brand names extended to new
           forms, sizes, and flavors of an existing
           product category.
         Brand Extension
            Existing brand names extended to new
           product categories.
         Multibrands
            New brand names introduced in the same
           product category.
         New Brands
            New brand names in new product
           categories.
Product Mix Decisions

                  Width - number
                    of different
                   product lines
    Consistency




                   Length - total                   Product Mix -
                  number of items                   all the product
                  within the lines                   lines offered


                  Depth - number
                   of versions of
                   each product




                          Generic Names

 Used to                    These were all originally
 describe a                      brand names.
 product class
                                     •Nylon
                                     •Kerosene
                                     •Escalator
                                     •Formica
                                     (will Kleenex be next?)




                     Good Brand Names:

Easy to remember and pronounce (Lite)
Invoke positive association (L’Eggs)
Suggest a positive image (Cover Girl)
Reinforce product concept (Palm
Pilot)(Craftsman)
Communicates product benefit (DieHard)
Says something about the user (Outward
Bound)
Avoids linguistic traps (Care’s ‘Gift’)
                         Packaging


Defined as: All activities involved in
designing and producing the container
or wrapper for a product.
Purpose of Packaging: To reduce the cost
of products to the consumer.




                  Major Function 1:
                     Protection

There are two aspects of the protection
function:
Protection of the Product
  shelf life, shrinkage, sanitation, contamination,
  pilferage, spillage, loss of identity, integrity, etc.
Protection from the Product
  child resistant, tamper resistant, dosage control,
  hazardous materials, non-interchangeable lids




                  Major Function 2:
                    Convenience
Manufacturer:
   interchangable pallets to unitized secondary pkgs.
Wholesaler:
   product codes on ctrs., stackable ctrs.
Retailer:
   UPC codes, plastic beverage ctrs., environmentally
   controlled plastic wraps for meats and vegs.
Consumer:
easy open/close, pour spouts, reusable ctrs., dosage control,
see through ctrs., measures
                 Major Function 3:
                  Communication

  This function involves both identity of the
  product / brand, and
  carrying necessary labeling to comply with
  various laws and regulations governing use of
  the product and its package.




               Special issues about
                   Packaging

  Over-Packaging?
     Candy, Cosmetics, etc.
  Environmental Degradation?
     Solid waste, resource depletion
  Reverse Cycles?
     Reusable containers, recyclable matierials




Product - Support Services
   Companies should design its support services to
   profitably meet the needs of target customers.
                        How?

 Step 1. Survey customers to determine satisfaction
 with current services and any desired new services.

 Step 2. Assess costs of providing desired services.

 Step 3. Develop a package of services to delight
 customers and yield profits.
        Universal Product Codes


Provide enormous amounts of information
In the distribution channel
In the store
To Researchers

								
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